PhonePe moves domicile from Singapore to India

• PhonePe said that all its subsidiaries have migrated from Singapore to India.
  
• The payment service company has also migrated ESOPs from PhonePe Singapore to PhonePe India.
  
• IndusOS, owned by PhonePe, has also shifted operations from Singapore to PhonePe India.
  
• PhonePe currently has over 350 million registered users.
  

Walmart-backed Indian payments service company PhonePe, today announced that it has completed three steps involved in moving its domicile to India.

Over the past year, PhonePe has moved all businesses and subsidiaries of PhonePe Singapore to PhonePe Pvt Ltd - India directly. This includes its insurance broking services and wealth broking businesses, the company claimed.

“Following these actions, all PhonePe Group businesses and entities are now wholly owned by and consolidated under PhonePe Pvt Ltd - India,” PhonePe revealed in a statement.

PhonePe’s board recently approved the creation of a new employee stock ownership plan (ESOP) plan and the migration of over 3,000 PhonePe Group employees’ existing ESOPs by issuing new ESOPs under PhonePe India’s new plan.

Under the newly liberalized automatic overseas direct investment ODI rules, PhonePe has also moved the ownership of recently acquired IndusOS Appstore (OSLabs Pte Ltd) from Singapore to India.

RBI, in effect from August 22, 2022, announced changes in the ODI rules for fintech firms. The ODI rules come under Foreign Exchange Management Act.

Last year, PhonePe acquired Samsung-backed IndusOS, an Indian smartphone application and content discovery platform.

PhonePe, founded in December 2015, is one of India’s largest payments apps, which crossed 350 million registered users in January this year. It forayed into financial services in 2017.

Flipkart, one of India’s largest ecommerce platforms and the largest shareholder in PhonePe, continues to be headquartered in Singapore.

One in four Indians use services of fintech Platform PhonePe with 150 monthly active users making it one of India’s widely used Unified Payment Interface (UPI) apps. The Bengaluru-based fintech startup declared in April this year that it crossed 100 million transactions in a day.

To further strengthen its enterprise, PhonePe acquired GigIndia in March 2022, a marketplace for gig workers for an undisclosed amount. GigIndia has 1.5 million entrepreneurs onboard its platform.

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